Penn National threw open its doors to Wall Street and JP Morgan, for one, came away impressed by what it heard. Basically, management is charting a fiscally conservative course, even though it could eventually reap $1.2 billion from its busted LBO. For instance, whereas Penn was formerly willing to plunk down $800 million for Bader Field in Atlantic City, now it's halved its valuation of the site.

Now Penn has turned its focus to some abandoned land west of the city (which would give it a "choke point" for traffic headed into A.C.) and Morgan seems to agree. It advises against buying an existing casino (read: Tropicana). It also found Penn bosses unconcerned with the narrow prospects for casino approval in Maryland and Ohio, writing: "our sense is that management would be content to see both [initiatives] fail." (If that were the case, it would be five rebuffs of casino legalization in one year; is the U.S. industry at or near a saturation point?)

Largely, this stems from concern about how both markets would sap traffic to Penn's flagship property in Charles Town, W.V. The proposed 67% (!) tax rate in Maryland is no small disincentive, either, although Penn has covered its butt -- should the pro-casino measure be passed -- by obtaining a site east of Baltimore. It's also moving to protect its Charles Town business by pushing for table games, something else that requires voter approval.

Looking down the road, Penn's capital projects appear to proceeding on or under budget, its debt is projected to decline by 44% over the next two years, while its cash flow increases 16%. And while Penn says it "can't get the returns or free cash flow" that would justify building in Las Vegas, it continues to contemplate scarfing up other companies' downgraded debt. Morgan thins Penn will either pursue a pure Vegas play or "another regional operator with LV exposure."

I'm thinking "Boyd" but remember that Penn has made one run at Harrah's Entertainment already and might well turn the latter's debt-strapped situation to its advantage. In any event, Morgan reports, Penn will bide its time, "as it feels asset values may get cheaper, and will take its time to evaluate opportunities given other casino operators' leverage. Just visualize a buzzard sitting on a tree branch in the desert, waiting for some poor, dehydrated soul to collapse.

By the way, Penn is proud owner of Bullwhackers Casino, a property whose name suggests nothing so much as the performance of unnatural acts upon livestock. But, if you want to know whatever became of Erin Moran, it's the place to go.